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February 2020 Results and Outlook – Total Energy Services Inc.

Total Energy Services Inc. · Feb 10, 2020 · 51 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. February 2020 Results and Outlook – Total Energy Services Inc. – slide 1
    Results and Outlook February 2020
  2. February 2020 Results and Outlook – Total Energy Services Inc. – slide 2
    Safety, Totals core value Cornerstone of operational efficiency & sustainability Total Recordable Injury Rate for Total and peers* 2019 average age of vessels* Per million man-hours Years 2 15 10 Contractors 1 0.8 Staff…
  3. February 2020 Results and Outlook – Total Energy Services Inc. – slide 3
    Reducing CO2 emissions while growing Scope 1 & 2 emissions from operated oil and gas facilities 2018 Upstream emissions intensity Mt/y CO2 eq kgCO2 eq/boe Scope 1&2 Operated 46 45 Peers range 41.5 < 40 20 New: 2016-25 35…
  4. February 2020 Results and Outlook – Total Energy Services Inc. – slide 4
    Oil markets fundamentally volatile 2019 highlights Lower demand growth than 2015-18 average (+1.5 Mb/d) +1 Mb/d +1.2 Mb/d Supportive policy from OPEC+ demand in 2019* demand in 2020* with deeper crude cuts Refining margins…
  5. February 2020 Results and Outlook – Total Energy Services Inc. – slide 5
    Petrochemical markets 2019-20 PE and ethylene margins /t Demand 1 500 Healthy global demand growth (3% in 2019) supported by resilient Asian markets Integrated US 1 000 (Ethane) Supply Integrated Europe US ethylene margins…
  6. February 2020 Results and Outlook – Total Energy Services Inc. – slide 6
    Gas markets 2019-20 LNG demand Demand Mt/y Low price environment and climate policies favorable + 13% to gas + 10%/y Key role for LNG in creating 350 + 9% more integrated markets China n1 worldwide LNG importer in Nov. and Dec.…
  7. February 2020 Results and Outlook – Total Energy Services Inc. – slide 7
    EU electricity markets 2019 highlights EU 28 gas, solar and wind power generation TWh Surge in cheaper LNG imports ( 80% growth) and +12% strong increase in CO2 prices creating EU power market 800 +13% arbitrage in favor of gas…
  8. February 2020 Results and Outlook – Total Energy Services Inc. – slide 8
    2019 results: strong track record of consistently delivering
  9. February 2020 Results and Outlook – Total Energy Services Inc. – slide 9
    Growing cash flow in a weaker environment Increasing high-margin new production CFFO* 2019 cash flow allocation B B +1.9 B Debt Working capital 25 Capital 17.4 investment CFFO* 26.4 64 1.75 Buyback /b 7.5 Dividend…
  10. February 2020 Results and Outlook – Total Energy Services Inc. – slide 10
    Consistently delivering strong results Sustainable profitability with 10% ROE in 2019 Adjusted net income B 13.6 11.8 Resilient results in a weaker Marketing & Services environment Refining & Chemicals Integrated Gas, E&P and…
  11. February 2020 Results and Outlook – Total Energy Services Inc. – slide 11
    Maintaining discipline on Opex Global Procurement Already Opex savings vs. 2014 base B 900 M 2018-19 savings Target: 1 B 2018-20 5 B 4.7 B 4.2 Downstream & Corporate Upstream 2018 2019 2020 Extending cost…
  12. February 2020 Results and Outlook – Total Energy Services Inc. – slide 12
    Outstanding 2019 Upstream performance Increasing cash margin in lower price environment Upstream, 2019 vs. 2018 % +9% +9% Cash accretive start-ups and acquisitions Egina, Kaombo, Yamal LNG, Ichthys Brent NBP Fully benefiting…
  13. February 2020 Results and Outlook – Total Energy Services Inc. – slide 13
    Downstream: maintaining strong CFFO despite volatile environment Best-in-class 25% ROACE CFFO Downstream ROACE B % Total vs. peers 6.6 B 7 Non-cyclical markets 2017 2018 2019 10% 20% 30% 40% VCM* (/t) 46 38 35…
  14. February 2020 Results and Outlook – Total Energy Services Inc. – slide 14
    Maintaining strong balance sheet Targeting gearing < 20% Limited impairments underpinning healthy portfolio Net-debt-to-capital 2019 impairment %, Total vs. peers B, Total vs. peers 30 20 10 Including Excluding leases…
  15. February 2020 Results and Outlook – Total Energy Services Inc. – slide 15
    Track record of consistent execution Delivering 2019 objectives Predictable and reliable delivery Adj. NOI from segments B Target Realized in 2019 Capital investment 18 B* 17.4 B 16.0 14.6 2019-20 asset sale 1.9 B realized 5 B…
  16. February 2020 Results and Outlook – Total Energy Services Inc. – slide 16
    Outperforming peers in 2019 2019 Net income vs. 2018 2019 CFFO* increase vs. 2018 % % 10% -10% -40% -80% -30% ROACE ROE % % 10% 10% Estimated for peers (BP, Chevron, Exxon, Shell) * Excl. working capital variation…
  17. February 2020 Results and Outlook – Total Energy Services Inc. – slide 17
    Delivering strategy for sustainable & profitable growth
  18. February 2020 Results and Outlook – Total Energy Services Inc. – slide 18
    Upstream: capitalizing on strengths Value over volume Delivering operational Focusing on value Highgrading portfolio excellence by playing to our strengths and renewing reserves Safety Technical expertise Renewed exploration…
  19. February 2020 Results and Outlook – Total Energy Services Inc. – slide 19
    Outstanding production growth Upstream production growth Mboe/d 2-4%* +9% Delivering 2018-19 cash accretive start-ups 3 +8% Increasing LNG production by 40% in 2019 2.5 Benefiting of low 3% decline rate thanks to high share…
  20. February 2020 Results and Outlook – Total Energy Services Inc. – slide 20
    Strong E&P cash flow 2019 increase despite weaker oil & gas prices E&P CFFO 2020 cash margin B CFFO /boe 60 /b 20 30 10 2016 2017 2018 2019 2020 2018-19 60 start-ups Brent (/b) 44 54 71 64 2019 Results and Outlook…
  21. February 2020 Results and Outlook – Total Energy Services Inc. – slide 21
    Competitive advantage on Opex Leveraging synergies and Total Global Services Maersk Oil synergies delivered quicker than expected Production costs* /boe 350 M/y 2020+ synergies Target 300 15 Exxon 9.9 Chevron 10 Shell…
  22. February 2020 Results and Outlook – Total Energy Services Inc. – slide 22
    Successfully replacing reserves 20 years of proved and probable reserves 2019 proved reserve replacement rate Proved reserves % % 100% 157% 124% Gas 100% 50% Condensates & LPG Organic Oil 1-ye ar 5-ye ar 5-ye ar…
  23. February 2020 Results and Outlook – Total Energy Services Inc. – slide 23
    Capturing promising deepwater exploration acreage First discovery in Surinam Block 58 in Surinam: 50% WI Op.* Block C-M-541 in Brazil: 30%** WI Op. Marlim BRAZIL Canje Rio de Janeiro Seat Gavea Joe Jethro PdA Maromba Stabroek…
  24. February 2020 Results and Outlook – Total Energy Services Inc. – slide 24
    Launching next wave of profitable projects 800 kboe/d to fuel growth post-2023 15% Troll, Ekofisk Arctic LNG 2 IRR* at 50 /b Glendronach Johan Sverdrup 2 Dunga Ph. 3 Cameron LNG Extension Energia Costa Azul Anchor NLNG T7**…
  25. February 2020 Results and Outlook – Total Energy Services Inc. – slide 25
    Refining & Chemicals: a focused strategy Consistently delivering 20% ROACE Investing in Priority to integrated platforms Growing Petrochemicals low carbon solutions 70% capital employed in 2025 Building on low cost feedstocks…
  26. February 2020 Results and Outlook – Total Energy Services Inc. – slide 26
    Priority to integrated platforms Antwerp: Totals largest integrated site in Europe Refining & Chemicals CFFO B 750 M CFFO in 2019 95% refinery utilization rate 4 2018 2019 2020 VCM (/t)* 38 35 35 Harvesting benefit of…
  27. February 2020 Results and Outlook – Total Energy Services Inc. – slide 27
    Growing Petrochemicals Leveraging low cost feedstock Petrochemicals production* % JV Total-Novealis (50%-50%) JV Hanwha-Total (50%-50%) 1 Mt/y ethane cracker 80% completed Gas cracker & PP expansion started in 2019 100% 0.6 Mt/y PE…
  28. February 2020 Results and Outlook – Total Energy Services Inc. – slide 28
    Investing in low carbon solutions 10% of Refining & Chemicals Capex Growing in biofuels and bioplastics Started up La Mede bio-refinery (500 kt/y) in 2019 Started up PLA plant in Thailand (75 kt/y) in 2019 Expanding in plastics…
  29. February 2020 Results and Outlook – Total Energy Services Inc. – slide 29
    M&S: growing selectively and delivering non-cyclical cash flow Expanding in large fast Developing Growing in growing markets non-fuel revenues low carbon fuels 4,000 stations targeted in new Increasing Shop Food & EV charging:…
  30. February 2020 Results and Outlook – Total Energy Services Inc. – slide 30
    Expanding in large fast-growing markets M&S CFFO Mexico Saudi Arabia China B 200 stations 300 stations* 300 stations 2.5 Lubricants Specialties Retail Brazil Angola India 300 stations starting operations starting…
  31. February 2020 Results and Outlook – Total Energy Services Inc. – slide 31
    Increasing non-fuel revenues Rolling out new Mobility shop concept in 2020 European retail CFFO B 0.8 Non-fuel Expanding fleet management services worldwide Acquired card solutions in 2019 for expansion in Africa Qualified…
  32. February 2020 Results and Outlook – Total Energy Services Inc. – slide 32
    Growing in low carbon solutions 10% of Marketing & Services Capex Developing top tier positions Marketing gases for road Growing clean marine fuels in Electro-Mobility transportation 0.6 Mt/y LNG bunker supply 16,000 operated…
  33. February 2020 Results and Outlook – Total Energy Services Inc. – slide 33
    iGRP: investing in growing markets Building strong positions along the integrated gas and electricity chains Global LNG Electricity in Europe Renewables worldwide Expanding Integrating along the Profitably investing in solar and…
  34. February 2020 Results and Outlook – Total Energy Services Inc. – slide 34
    iGRP: contributing to the energy transition Investing in sustainable long-term cash generation CFFO B 4 2018 2019 2020 NBP (/Mbtu) 7.9 4.9 5 HH (/Mbtu) 3.1 2.5 2.5 15% of Group CFFO in 2019 2019 Results and Outlook 34
  35. February 2020 Results and Outlook – Total Energy Services Inc. – slide 35
    Integrated LNG: harvesting benefits from portfolio and market growth LNG sales CFFO Mt/y B +1.5 B 4 Spot 30 Supply from 3rd party (growth from USA) Supply from equity JVs Equity JV sales to 3rd party 2018 2019 2020…
  36. February 2020 Results and Outlook – Total Energy Services Inc. – slide 36
    Integrated and diversified portfolio with a global reach Yamal LNG Snhvit LNG Artic LNG 2 Rotterdam Cove Point LNG Skikda Driftwood LNG* Arzew ELNG ECA LNG* Cameron LNG Sohar LNG Freeport LNG Sabine Pass LNG Qatargas Qalhat…
  37. February 2020 Results and Outlook – Total Energy Services Inc. – slide 37
    Developing along the integrated electricity value chain in Europe CCGT Renewables Marketing Supply & Trading 2 GW in 2019 2 GW in 2019 (x2 vs. 2018): Leveraging brand recognition Acquired 700 MW solar and digitalization 50%…
  38. February 2020 Results and Outlook – Total Energy Services Inc. – slide 38
    Profitably investing in renewables Building on expertise of 10,000 employees Accelerating renewables Renewable worldwide gross Expanding storage growth capacity solutions GW 6 Qatar: awarded 800 MW large- China: partnering…
  39. February 2020 Results and Outlook – Total Energy Services Inc. – slide 39
    Growing cash flow and shareholder return
  40. February 2020 Results and Outlook – Total Energy Services Inc. – slide 40
    Integrating climate into strategy Focusing on Taking into account anticipated market trends oil projects with low breakeven Global energy demand Mboe/d Expanding along the 300 gas value chain Renewables Nuclear Developing…
  41. February 2020 Results and Outlook – Total Energy Services Inc. – slide 41
    Our ambition: reducing the carbon intensity of energy products used by our customers Carbon intensity of energy products sold to our customers The leading Major in Base 100 in 2015 (75 gCO2e/kbtu) decarbonizing its energy mix Realized…
  42. February 2020 Results and Outlook – Total Energy Services Inc. – slide 42
    Act on products, Act on demand, Act on emissions The key levers to reach our carbon intensity ambition Liquids Gases Electrons Carbon sinks Decarbonize oil: Decarbonize natgas: Focus on renewables Support carbon blend with biofuels…
  43. February 2020 Results and Outlook – Total Energy Services Inc. – slide 43
    Maintaining discipline on Capital investment 16-18 B/y over 2019-23 Capital investment* 2019-20 asset sales B B 18 17.4 Downstream Net acq. Low carbon 4 Bboe at 5 electricity 2.5 /boe Low carbon LNG Capex Exploration UK…
  44. February 2020 Results and Outlook – Total Energy Services Inc. – slide 44
    Africa at the heart of Total strategy Developing deep-offshore and large LNG resources Successfully starting-up cash accretive Kaombo and Egina Bashrush-1 Accessing low cost resources Timimoun Berkine Bassine** Waha Upstream + M&S…
  45. February 2020 Results and Outlook – Total Energy Services Inc. – slide 45
    Delivering cash flow growth Debt adjusted cash flow (DACF) B Strong contribution from 2018-19 project start-ups: 3.5 B CFFO* +1 B/y 35 2020+ from Egina, Ichthys, Kaombo and Yamal LNG 28.5 Clear visibility over 2019-25 26.1…
  46. February 2020 Results and Outlook – Total Energy Services Inc. – slide 46
    Clear priorities for cash flow allocation 1 2 3 4 Capital Balance Share Dividend investment sheet buyback Maintain 16-18 B per year 5-6% increase per year gearing < 20% 5 B over 2018-20 over 2019-23 grade A credit rating…
  47. February 2020 Results and Outlook – Total Energy Services Inc. – slide 47
    2019 ESG key facts Total, the Responsible Energy Major Total commitment recognized by rating agencies A- grade Transparency: issued 4th Climate Report Public assessment of industry associations Best score for Climate Change…
  48. February 2020 Results and Outlook – Total Energy Services Inc. – slide 48
    Delivering shareholder return policy 1-year TSR %, Total and peers*, 2019 2-year TSR %, Total and peers*, 2018-19 10% 10% 3-year TSR %, Total and peers*, 2016-19 30% -10% 15% Best-in-class TSR -15% Bloomberg data,…
  49. February 2020 Results and Outlook – Total Energy Services Inc. – slide 49
    Actively engaged in energy transition for sustainable growth and return to shareholder Delivering results Growing cash flow Reducing breakeven to increase resilience to volatile environment Discipline on Opex and Capex Executing…
  50. February 2020 Results and Outlook – Total Energy Services Inc. – slide 50
    Appendix 2019 Results and Outlook 50
  51. February 2020 Results and Outlook – Total Energy Services Inc. – slide 51
    Resilient sales portfolio benefiting from oil price upside 2020 index exposure Long term contract price reviews % % 100% Price review after 2022 Open to optimization HH 50% EU gas Production Oil costs No price…

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